The total expenses of a hospital are related to many factors. Two of these factors are the number of beds in the hospital and the number of admissions. Data were collected on 14 hospitals, as shown in the table below:

Find the best regression model to predict the total expenses of a hospital. Discuss the accuracy of this model. Should both variables be included in the model? Why or why not?

Transcribed Image Text:

NUMBER ADMISSIONS TOTAL EXPENSES HOSPITAL OF BEDs (100s) MILLIONS) 57 127 157 24 215 336 520 135 35 210 140 90 410 160 4 155 93 53 159 10 16 12 42 15 21 63 110 28 14 98